The economic headlines present two divergent realities right now. One shows sunny skies, and the other, a fierce storm brewing. Today, we consider the signs and how to prepare for the next recession—one that seems inevitable.
On the one hand, unemployment remains at near 50-year lows. Consumer confidence is high. Wages are rising. And—if you don’t mind some unnerving bumps in the road—the stock market has continued it’s mostly upward trajectory to recent new highs. On the surface, things look pretty good.
This article is adapted from Perpetual Wealth: How to Use “Family Financing” to Build Prosperity and Leave a Legacy for Generations. This new book from Kim D. H. Butler and Kate Phillips is available for a limited time as a download—on us! Scroll down to find out more and sign up for your copy… or download it right now!
Saving Saves Families
One of Kim’s sayings is, “Saving saves families.” Both saving (as a verb) and the resulting savings (noun) makes a world of difference.
With savings, people can handle emergencies and build up additional capital to invest with. With savings, people can get the education, training or mentorship they need to pursue a fulfilling career. They can purchase a home and not be at the mercy of a rental market. They can start a business and employ others. And they can afford the things that are important to them.
Without savings, people struggle and families are sometimes even torn apart. Financial stress and a lack of savings can threaten families and lasting wealth in multiple ways:
“Ramsey is the pro bono financial adviser to millions of Americans who otherwise could never afford one.”
There’s a gap in financial advice. Financial advisors, planners and money managers don’t typically do a good job of serving the working class. Many people are buried in consumer debt, living paycheck to paycheck. Many may never meet with a financial professional. After all—they lack funds to invest and it doesn’t make sense in their case to pay a fee for advice. These are people who have been largely neglected and forgotten by a financial industry that isn’t compensated to help them.
Enter Dave Ramsey. His Total Money Makeover is one of the best-selling personal books of all time. His radio program and podcast are heard by 14 million weekly. And over 5 million people have gone through his Financial Peace University program.
Today’s article is a guest post from Kate Phillips of Total Wealth. Kate is co-author with Kim Butler of Financial Planning Has Failed and Perpetual Wealth.
By any measure, financial stress is an enormous problem. About 7 out of 10 of all Americans say they are financially stressed, according to a recent Prudential American Workers survey and a John Hancock Financial stress survey.
The majority of Americans live paycheck-to-paycheck, say multiple surveys. 40% of Americans can’t cover an unexpected $400 expense without using a credit card, according to a 2018 Federal Reserve Economic Well-Being Report. Money worries also typically top the list of reasons for marriage conflicts and divorce.
Do you intend to leave a legacy? Utilizing life insurance and selecting policy beneficiaries for your policies and/or other accounts makes leaving legacy gifts simple, keeping them out of probate or the state courts. That is… unless you make a critical mistake. We wrote this beneficiary checklist so you won’t!
You’ve put a legacy into place that assures loved ones and/or your favorite charities will receive monetary gifts according to your wishes. But there are a handful of mistakes we see people make when it comes to naming beneficiaries or keeping them up-to-date.
We hate to see people make costly financial mistakes—especially when those mistakes are preventable, and when those making the mistakes have the means to do better. In today’s article, we explore the surprising results of a new study—and common financial mistakes to avoid!
It is no surprise that many Americans struggle with money and getting their financial ducks in a row. What may come as a surprise is the level to which even six-figure earners and millionaires grapple with financial basics, too. It’s not uncommon for comparatively “wealthy” Americans to find themselves living paycheck to paycheck, chronically underinsured, and unprepared for a financial emergency.
This article is adapted from Perpetual Wealth: How to Use “Family Financing” to Build Prosperity and Leave a Legacy for Generations. This new book from Kim D. H. Butler and Kate Phillips is available for a limited time as a download—on us! Scroll down to find out more and sign up for your copy… or click here to download it right now!
The statistics about generational wealth are not encouraging. Studies quoted by the Wall Street Journal confirm that as much as 70% of family wealth is lost by the second generation, and 90% by the third. Another study based on survey data from the Federal Reserve and a National Longitudinal Survey found that one-third of heirs had negative savings within two years of the gift. For these beneficiaries—one in three—every penny is lost or spent.